Circle K
- Thread starter Jpatel7
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I have not operated one but have spoken with a few operators and what they told me is the increase and sales more than offset the franchise fee.
wrkinsilence
Administrator
It really varies by location and management. I know several Circle K operators who only run convenience stores without fuel, and while they see decent sales, their overhead can be pretty significant. They often need more staff on shifts, particularly someone focused on food prep and packaging, which drives up payroll costs. If you're considering managing the store yourself to cut those expenses, it could be profitable.
I've noticed that some Circle K locations in SoCal are up for sale because their overhead and rent are too high, and many owners aren’t keen on working the shifts themselves. That's definitely something to keep in mind. On the plus side, their royalty rate is only about 6%, which is quite competitive compared to 7-Eleven.
Yes sir! That sounds about right based off of my research. I’m in Florida, and cirlce K stores do good in this market. This particular site is doing around 90k inside, and 25k gallons outside (commission deal). Rent is around $7800 all included. Lotto commission is around 1k a week. Would you consider this a good deal? I plan on operating the store with 1 other full time employee. The current operator is fully hands off right now. I believe his royalty fee currently is around 3.5%. He is asking 150k for the business. Would love to hear what you think!
@Jpatel7 I currently have two under my belt, one with gas and one being just c-store alone. Overall experience has been well and Circle K does a pretty good job of keeping in touch with you for updates/promotions/etc. As @wrkinsilence mentioned, there is a big difference between the franchise fees for 7 eleven and Circle K. With Circle K, expenses are very high. To me, it is worth it if you are thinking of long term ventures. You also can’t beat our polar pop foam cups! Let me know if there is anything specific I can assist with!
1711strong
New member
Hi - is the wages/salaries expense higher with Circle K because of the Krispy Krunchy Chicken partnership? Also is that a required program?
How often do the circle K reps come to visit the store? I know compared to 7/11, it is MUCH more better. 7/11 does real well here only in certain cities. Mostly South Florida, and a little bit of the Tampa Bay Area. I also agree that circle K is a long term venture. Circle K relies on the SSCS reports correct? The current operator has handed over the last 6 months SSCS reports and everything looks solid on our end. And is it true that the profit margin is almost 100% on the polar pop?
Reps can stop by as often as you’d like and are open to schedule meetings whenever needed. Yes, Circle K’s back office is through SSCS. It’s definitely not 100% profit for the polar pop. Just one box of syrup is roughly $100. This is why I personally would not rely on just the SSCS reports when analyzing the books of store. For sales, yes. But for margin/gross profit, it is not reliable.
I see. That makes sense. Are SSCS reports 100% accurate as far as sales go? We’re relying on that heavily during our due diligence process. Also, how hard is it to be approved for circle k? This particular site is owned by the gas company. When we apply what can we expect as far as the roadway to getting approved as a franchisee? There are 2 other partners as well. Do we each need to show 1 Million in assets or just combined? And how long does the approval process take? What’s the training process like? Does only one partner or manager have to attend training?
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